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Amendment to the “Transportation Equity Act for the 21st Century (TEA-21)”
in 1998 led to this project
Cost of Corrosion - Acknowledgement
• Project Funded By:
• Federal Highway Administration (DOT)
• Office of Infrastructure Research and Development
• Project Manager: Y. Paul Virmani, Ph.D.
• In Cooperation With:
• NACE International – The Corrosion Society
• Disseminating study finding – raise awareness
Cost of Corrosion - Acknowledgement
• CC Technologies
• Gerhardus H. Koch, Ph.D.
• Neil G. Thompson, Ph.D.
• Michael P.H. Brongers
• Joe H. Payer, Ph.D., Case Western – Reserve University
Cost of Corrosion – Study Contractor
• Study Goals
• Previous Studies
• Current Study
• Method 1 – Corrosion Control Methods & Services
• Method 2 – Industry Sector Analysis
• Highlights of Selected Sectors
• Extrapolation to Total Corrosion Cost
• Preventative Strategies
Cost of Corrosion – Presentation Outline
• Determines the cost of corrosion control methods and services
• Determines the cost of corrosion for specific industry sectors
• Extrapolate individual sector costs to a national total corrosion cost
• Assess barriers to progress and effective implementation
• Develop strategies for realizing cost savings
Cost of Corrosion – Study Goals
• 1950 H.H. Uhlig – US Study: 2.1% of GNP
• 1970 T.P. Hoar – UK Study: 3.5% of GNP
• 1974 Japan Study: 1.2% of GNP
• 1975 Battelle/NBS – U.S. Study: 4.5% of GNP
Cost of Corrosion – Previous Studies
• All costs are direct corrosion costs
• Disadvantage: many costs are missed
• Costs of labor attributed to corrosion management activities
• Cost of the equipment required because of corrosion-related activities
• Loss of revenue due to disruption in supply of product
• Cost of loss of reliability
Cost of Corrosion – Method 1 – Methods & Services
Protective Coatings B$ 108.6
Corrosion Resistant Alloys B$ 7.7
Corrosion Inhibitors B$ 1.1
Engineering Plastics/Polymers B$ 1.8
Cathodic & Anodic Protection B$ 1.0
Corrosion Control Services B$ 1.2
Research & Development B$ -
Education & Training B$ -
TOTAL: B$ 121.41
Cost of Corrosion – Method 1 – Methods & Services
• For each sector, details of analysis are different
• Government Reports
• Publicly Available Documents
• Industry Experts
• U.S. Department of Commerce Bureau Census
• Existing Industrial Surveys
• Trade Organizations
• Industry Groups
• Individual Companies
Cost of Corrosion – Method 2 – Industry Sector Analysis
• 26 Sectors in 5 Categories
• Infrastructure
• Utilities
• Transportation
• Production & Manufacturing
• Government
Cost of Corrosion – Method 2 – Industry Sector Analysis
Cost of Corrosion – Method 2 – Industry Sector Analysis
Highway Bridges B$ 8.3
Gas & Liquid Transmission Pipelines B$ 7.0
Waterways & Ports B$ 0.3
Hazardous Materials Storage B$ 7.0
Airports B$ -
Railroads B$ -
TOTAL: B$ 22.6
Cost of Corrosion – Category: Infrastructure
Gas Distribution B$ 5.0
Drinking Water and Sewer Systems B$ 36.0
Electrical Utilities B$ 6.9
Telecommunications B$ -
TOTAL: B$ 47.9
Cost of Corrosion – Category: Utilities
Motor Vehicles B$ 23.4
Ships B$ 2.7
Aircraft B$ 2.2
Railroad Cars B$ 0.5
Hazardous Materials Transport B$ 0.9
TOTAL: B$ 29.7
Cost of Corrosion – Category: Transportation
Oil & Gas Exploration & Production B$ 1.4
Mining B$ 0.1
Petroleum Refining B$ 3.7
Chemical, Petrochemical, & Pharmaceutical B$ 1.7
Pulp & Paper B$ 6.0
Agricultural Production B$ 1.1
Food Processing B$ 1.1
Electronics B$ -
Home Appliances B$ 1.5
TOTAL B$ 17.6
Cost of Corrosion – Category: Production & Manufacturing
Defense B$ 20.0
Nuclear Waste Storage B$ 0.1
TOTAL B$ 20.1
Government
Infrastructure B$ 22.6
Utilities B$ 47.9
Transportation B$ 29.7
Production & Manufacturing B$ 17.6
Government B$ 20.1
TOTAL B$ 137.9
Cost of Corrosion – Summary of Sector Analyses
Highlights of Selected Sectors
Highways & Bridges
Transmission Pipelines
Drinking Water & Sewer Systems
Oil & Gas Exploration & Production
Highways & Bridges
$8.3 Billion Per Year
National Bridge Inventory Database
•Approximately 600,000 bridges in the U.SHalf were built
between 1950 and 1994
•The materials of constructionThe materials of constructionConcrete, steel, timber, masonry, Concrete, steel, timber, masonry, timber/steel/concrete combinations, & aluminumtimber/steel/concrete combinations, & aluminum
•This sector focused on reinforced concrete and steel bridges; they make This sector focused on reinforced concrete and steel bridges; they make up the vast majority of highway bridgesup the vast majority of highway bridges
Highway Bridges – TrendsHighway Bridges – Trends
•Reported downward trend in the % structurally deficient bridges - decrease from 18 % to 15 % between 1995 to 1999
•However, costs to replace aging bridges increased by 12 % during the same period.
•In addition, there has been a significant increase in the required
maintenance of the aging bridges
Replace structurally deficient bridges B$ 3.79 B$ 3.79
Maintenance and capital cost For concrete bridge decks 2.00 2.00 For concrete sub- and superstructures 2.00 2.00
Maintenance painting cost for steel bridges .5.5
Total : B$ 8.29Total : B$ 8.29
Sector Summary: Highway BridgesSector Summary: Highway Bridges
Indirect corrosion costs:
•Estimated from life-cycle analysis
•Costs to user due to traffic delays & lost productivity
•More than ten times the direct cost of corrosion
Highway Bridges - FindingsHighway Bridges - Findings
Gas & LiquidTransmission Pipelines
$7 Billion Per Year
• Over 480,000 Miles of Gas and Liquid Transmission Pipelines
• Gas Transmission
• Natural Gas Lines – 328,000 Miles
• Liquid Transmission Lines
• Crude Oil Lines – 74,000 Miles
• Liquid Product Lines – 82,000 Miles
• 60% of These Lines Are Over 40 Years
Gas & Liquid Transmission Pipelines
Gas & Liquid Transmission Pipelines
T ransm ission300K m iles
D is trib u tion1,700K m iles
Gathering28K m iles
N atu ra lG as
2,000K m iles
Crude Oil53K m iles
Liquid Products82K m iles
T ransm ission135K m iles
Gathering21K m iles
H azard ou sL iq u id s
156K m iles
Pipe l ines P roduction F ac ilities
O il & G as
• Typical Corrosion Related Costs
• Annual ICCP System Investment - $40 Million
• Annual Sacrificial CP Investment - $9 Million
• Annual O&M Costs - $2.4 Billion - $4.8 Billion
• Certification
• 30% of Companies has personnel dedicated to Corrosion Control
• Regulations require Certification of Corrosion Control Staff
• Annual Cost $32.4 Million
Gas & Liquid Transmission Pipelines
LowEstimate
HighEstimate
Average
($ x M) ($ x M) ($ x M) %
Cost of Capital 2,500 2.840 2,670 38
Operations & Maintenance (O&M) 2,420 4,840 3,630 52
Cost of Failures (Non-Related O&M) 471 875 673 10
TOTAL COST DUE TO CORROSION 5,391 8,555 6,973 100
Sector Summary: Transmission Pipelines
Drinking Water &Sewer Systems
$36 Billion Per Year
• Two Separate Systems
• Drinking Water
• Sewage Water
• Costs in Operation, Maintenance, Finance, Capital Investments
• Maintenance crews find and repair leaks, but the number of leaks
increases with system age.
Drinking Water & Sewer Systems
• System Size
• 550 liters of water consumption per person per day
• 56.7 Billion m3 / year in the U.S.
• 1.4 Million km of municipal water pumping
• A major barrier to progress in corrosion management is the absence
of complete and up-to-date information on all water systems.
Drinking Water & Sewer Systems
• There are only 2 reasons why utilities replace or change water systems:
• Pipes are considered broken,
• Leaking water
• Corrosion products in the water
• Capacity too small for the area
• Assume 50% of all operation and maintenance costs are corrosion-related
Operation & Management Costs
• 1997 EPA: B$6.9 per year
•Drinking water system maintenance only
•1998 AWWA: B$16.3 per year
•Drinking water transmission – maintenance only
• 2000 WIN: B$51 per year for Drinking Water
B$45 per year for Sewer Systems
• Includes Operation, Maintenance, Finance, Capital
Three Reports on Water System Costs
• Nationwide, 15% of treated water is lost
• Loss of revenue: B$3.0 per year
• More than 90% of lost-water cost is corrosion-related, because of leaking systems
• Underground leaks go unnoticed: Therefore low cost awareness
Cost of Lost Water
• Operation, Maintenance, Finance, Capital
•Drinking water systems B$19.25
•Sewer systems B$13.75
•Cost of Lost water B$3.0
TOTAL B$36.0
Sector Summary: Drinking Water & Sewer Systems
Oil & GasExploration Production
$1.4 Billion Per Year
• Significant available onshore oil & gas reserved have been explored
• U.S. 1998 Oil Production – 3.04 Billion Barrels
• Recoverable Reserves
• Deep Waters Offshore
• Remote Arctic Locations
• Reservoirs with Unconsolidated Sands
Background
• Relative High Costs of Oil & Gas Production in the U.S.
•Maintenance Costs Must be Kept to a Minimum
•Emphasis on Controlling Internal Corrosion with Corrosion Inhibitors
Background
• Operation, Maintenance, Finance, Capital
•Surface Piping & Facility Costs M$589
•Downhole Tubing Expenses M$463
•Capital Expenses M$320
TOTAL B$1.36
Sector Summary: Oil & Gas
How to Extrapolatethe
Total Cost of Corrosion
• Estimated Cost B$138
• Extrapolated Cost B$276
• Actual Cost >B$550
• Bridges >5 times
• Electric Utilities >3 times
Total Cost of Corrosion
Total Direct Cost of Corrosion in the U.S.B$276 / year = 3.1% of GDP
1998 U.S. GDPB$8,790
• Increase awareness of the large corrosion costs and potential savings
• Change the misconception that nothing can be done about corrosion
• Change policies, regulations, standards, and management practices to increase corrosion savings
• Improve education and training of staff
Non-Technical Preventive Strategies (4)
• Advance design practices for better corrosion management
• Advance life prediction and performance assessment methods
• Advance corrosion technology through research, development, and implementation
Technical Preventive Strategies (3)
• FHWA – RD-01-156 – Full Report
• FHWA – RD-01-157 – Tech Brief
• Contact:
•Federal Highway Administration
•Y. Paul Virmani (202) 493-3052
• Web Site:
• http://www.corrosioncost.com
Further Information